07-19-10 Market Commentary for Gold and Silver
Silver Market Recap Report for 7/19/2010
After showing some initial positive track with the gold market in the early US trade, silver prices came under a wave of sharp selling pressure that didn’t seem to be mitigated by positive trading action in copper and energy prices. Like gold, silver seemed to be at least partially deflated by fresh news of slowing in the US economy and also because of the appearance of renewed strength in the US Dollar. Like gold it is also possible that silver saw some technically related selling pressure as September silver fell through what appeared to be several layers of key chart levels and in the process prices initially fell to the lowest level since June 7th.
Gold Market Recap Report for 7/19/2010
The gold market saw a range down extension today that initially took prices to the lowest level since May 21st. Apparently the bull camp wasn’t able to capitalize on potentially concerning Euro zone financial headlines this morning as the Ireland downgrade was certainly noteworthy to the global trade overnight. Some gold players suggested that weak US data and a choppy two sided trade in the US equity markets rekindled slowing or deflationary fears again. Others suggested that gold prices simply fell victim to technical stop loss selling in the wake of a slide below the early July lows on the charts.
After reading the silver and gold review, traders might want to take a peek at the commercial traders momentum. The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports. Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it. In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much. Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices. Therefore, trader should be able to incorporate this valuable information into their future market education.
The daily commentaries provide a rundown of any reports released that day, a recap of each commodity’s traded price activity, an analysis of the factors that influenced price activity, and a look ahead at the next day’s schedule. CME Group provides market commentaries for wheat, soybeans, corn, silver and gold. The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Andy Waldock publishes this blog. Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity & Derivative Advisors, located in Sandusky, Ohio. For that reason, Andy Waldock may have positions for himself, his customers, or his relatives in any commodity future market discussed. The blog is meant for educational purposes and to develop a discussion among those with an interest in the commodity future markets. The commodity markets may not be suitable for all investors due to the high degree of leverage. There is considerable risk in investing in commodity futures. If you are interested in reading other circulated articles, commenting on his publications or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
Category: From the Editor
